link: http://ift.tt/1Wvpd4V
Hot And Trending...
Trending
- The government wants to check my cat
- What do you think that Greece should do?
- U.S. home sales approach eight-and-a-half-year high, prices surge
- Monopoly’s New Era by Joseph E. Stiglitz
- @gthomaske This relates to the future not the past
- Silver Jewelry Sales Strong, Reflecting Broader Demand for the White Metal http://bit.ly/1N8Nwwl @SchiffGold
- Deflation caused by economy growth makes people richer, right?
- US consumer sentiment falls in August http://bit.ly/1N03uwO
- For the first time in several months, North American funds saw the biggest increase. US-listed ETFs accounted for 73% of global net inflows in January, reversing the 2017 trend in which European funds dominated net inflows. http://bit.ly/2FWnaRe
- #Republicans show their true big government colors in that the only automatic trigger they will even consider to offset larger future deficits is one that raises taxes not one that cuts spending!
Friday, May 13, 2016
Deflationary spiral in a commodity based currency
Last time I posted here I was curious about the Austrian response to the [new deal](http://ift.tt/1WvpaWM) and you guys recommended FDR's Folly: How Roosevelt and His New Deal which was a great read. I'm still relatively new to Austrian economics so I was wondering what happens when a commodity based currency enters a deflationary spiral. People are obviously more inclined to sit in money (which will be worth more tomorrow) which drives demand down, and a result, unemployment up. I watched a video with a German economist saying that the shareholders should offset costs by lowering production costs. Unfortunately I can't find it but that method seems incredibly inefficient. I know 19th Century America went through extended periods of deflation and I was curious as to what happened to consumption and savings during that period Thanks in advance